using distributed flexibility for ancillary services: the...
TRANSCRIPT
Using distributed flexibility for ancillary services:
the role of Elia as catalyst for new market developments
Hans Vandenbroucke, Market Development
"Chaire ORES Smart Grids - Smart Metering", March 30th, 2017
Disclaimer: some elements of this presentation have, for the sake of easiness of understanding, been
represented in a more simplified way than what they are in reality
Need for additional flexibility: a multi-dimensional approach
Context Impact for Grid Operators Necessary Answers
Flexibility needs
More important & more volatile
Flexibility sources
New technologies & players
… with challenges
& opportunities …
A rapidly changing
environment …
… requires an ambitious but
pragmatic approach
Keep “needs” under control
• Enforced Balancing Responsible Party (BRP) role
• Dynamic “needs” dimensioning
Cover “needs” efficiently
• Reserve sharing
• Cross border integration
• Shorter term procurement
• Open market to all
All technologies (batteries, load,..)
All players (independent BSP)
All voltage levels (TSO & DSO levels) The regionalisation
of the electricity
sector
RES
development
Decentralisation,
digitalisation &
new players
Year aFRR+ mFRR+ FRR- aFRR- mFRR-
2016 910 140 770 140 140 -
↓
2021 1240 175 1065 1000 175 825
2023 1240 175 1065 1000 175 825
2027 1240 175 1065 1000 175 825
NEEDS VOLUMES
FCR R1
aFRR R2
mFRR R3
Trend
NEW
Source: Adequacy study and assessment of the need for flexibility in the Belgian electricity system - April 2016, available on www.elia.be
Increased flexibility needs for balancing [MW]
Product opening
Open our products to all:
• Technologies • Market parties • Voltage levels
• Energy bidding rules • Generic prequalification rules • Generic activation controls • Generic Rx performance controls • Merit order activation
Market rules harmonization Contractual harmonization
Product development: A global roadmap with 3 major steps
Steps in function of regulation / EU discussions
1 standardized contract for all flexibility
2016 2020
7
+ Q3 2016: R1XB with DE
+ 05/2017: R1 new technologies (e.g. batteries)
FCR: Roadmap
+ 2018/19: Generic FCR contractual framework
R1 product type
Technology
TSO GEN>25MW
TSO Non-conventional
DSO connected
Asym up / down
R1 down R1 down R1 down
R1 up R1 up R1 up
Sym 100 / 200 Mhz
R1 sym R1 Sym R1 sym
R1 product type
Technology
TSO GEN>25MW
TSO Non-conventional
DSO connected
Asym up / down
R1 down R1 down R1 down
R1 up R1 up R1 up
Sym 100 / 200 Mhz
R1 sym R1 Sym R1 sym
Be
gin
nin
g 2
016
Sin
ce O
ct
2016
Distributed
flexibility
8
Product Detailed description Types Offered by
Secondary
reserves (R2)
• automatically and continually activated both upstream and downstream.
• It kicks in quickly (between 30 seconds and 15 minutes) and remains active
as long as it is needed.
R2-up TSO GEN>25MW
CIPU
R2-down TSO GEN>25MW
CIPU
aFRR roadmap
R2 is the most important balancing
product for Elia
• 85% of the balancing energy activated
• Setting the imbalance price for at least
80% of the time
• Together with R1 accounting for 60 -
70% of the AS budget
Challenges
• Needs for reserve volumes are slightly
increasing
• Future of historic providers
(conventional power plants) is uncertain
and expensive (must run)
Potential solutions
• Cross border integration: technically
very complex and requires Cross Border
capacity (= will take time)
• Diversification: Wind (pilot R2 wind),
CHP & Load
Elia has initiated a pilot project with willing industrial consumers or aggregators to develop an
R2 (aggregated) non-CIPU product (incl. distributed flexibility)
mFRR Target Model
9
R3 Standard
[CIPU units]
ICH Up
[TSO GUs]
R3 Flx
[Aggregator]
Free bids
Up /Down
[CIPU units]
R3 Generic
Up/Down
[BSPs]
Free bids
Up/Down
[BSPs]
As Is (2017) To Be
Non contracted mFRR Contracted mFRR Legend:
R3 Standrad
[CIPU units]
ICH Up
[TSO GUs]
R3 Flex
[Aggregator]
Order of activation
MO: free prices MO: free prices No MO: no prices No MO: fixed prices
Order of activation
R3
Contingency
[BSPs]
Bid Ladder platform
R3 Generic
Up/Down
[BSPs]
R3
Contingency
[BSPs] *
Energy Bids
Reserve Bids
TBC *
TBC *
National MO
merged with XB
CMO
Distributed
flexibility
Non-reserved tertiary control power BidLadder Pilot Project
The BidLadder Pilot creates a platform to allow free bids for energy balancing from TSO-connected non-
CIPU generation and load offered to Elia by a BSP*, i.e. independent aggregators, grid users or BRPs.
(R1/)R2 Free Bids R3
Standard
R3
Flex ICH
The bigger “balancing” picture:
Today: Free Bids only by BRPs via CIPU
BidLadder Pilot: BSP offering non-CIPU generation and load
10
* BSP = Balancing Service Provider
ARP workshop - 16 March 2017
The BidLadder pilot project:
a pilot for a new product and transfer of energy
• The pilot project starts without Transfer of Energy and with delivery points connected to the Elia network.
• However, the ambition is clear, i.e. to also enable delivery points from DSO networks and to enable Transfer of
Energy.
• Transfer of Energy is a “feature” that will not be limited to one product, also R3 and other products will evolve
including ToE
ARP workshop - 16 March 2017 11
TSO ** DSO
Without ToE* 1/7/2017
With ToE
* ToE = Transfer of Energy
** Including delivery points within a TSO-connected CDS
and delivery points with a submeter
Current scope pilot
project
DSO involvement
needed
Adapted legal
framework needed
mFRR roadmap
2017 2018 2019 - 2020
Step 2 : merit order activation Step 3 : EU standard products Step 1: product opening
Towards EU integration
Reservation • Technological neutrality
• Monthly sourcing • Stop ICH
• EU standard capacity product
• Dynamic dimensioning
• Weekly/daily sourcing
Activation • EU standard energy products • Bid Ladder v1: free bids
open to TSO DPs
• Bid Ladder v2: Common merit order activation for
all R3 products
Free bids DSO DPs
Distributed
flexibility
0
50
100
150
200
250
300
350
400
2013 2014 2015 2016 2017
Off
ere
d V
olu
me
in M
W
R3DP-R3 Flex Volume Offered in MW
Increase of offered volumes and suppliers – share distributed flexibility
13
Offered volume of mFRR from Non Conventional
Units (including demand response) has been growing
over the years, in line with product opening/redesign
Distributed flexibility prequalified for R3 Flex in
2015 (679MW ) increased to 885MW in 2016.
Available R3DP Flex ~ 500MW
Role for DSO in prequalification embedded in
TRD/RTD (and in SO Guideline art 182,5)
0
2
4
6
8
10
12
2012 2013 2014 2015 2016 2017
Number of R1 Belgian Suppliers
R1 CIPU Suppliers R1 Non-CIPU Suppliers
# suppliers increases
R1 diversification not only in Belgium but also at EU
level
R1 down volume from distributed flex ~12MW
since August 2016
Distributed flexibility is an additional source of liquidity for supply of ancillary services
Access to market is primordial: grid users and aggregators (Balancing Service Providers/BSP)
ELIA has opened product portfolio to all players, all technologies and all voltage level
Transfer of energy needs to be addressed to allow independent BSPs to be active in R3-market with
activation price (in a full merit order activation)
Legal inititiave ongoing
Coordinated access to distributed flexibility requires dynamic congstion management and sound data
management
Close cooperation beween TSO ad DSOs via coordination agreements
Conclusions
14
Many thanks for your attention!
ELIA SYSTEM OPERATOR
Boulevard de l'Empereur 20
1000 Brussels
+32 2 546 70 11
info@ elia.be
www.elia.be
An Elia Group company